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2024 (5) TMI 40 - AAAR - GSTExemption supply or not - services of leasing of the land for industrial purposes by SMPK to the applicant - upfront premium payable by the applicant towards the services of leasing of the land for industrial purposes by SMPK, exempt or not - entry 41 of N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 - WBAAR held that ' services of leasing of the land for industrial purposes by SMPK to the applicant is found not to be covered under entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and therefore cannot be treated as an exempt supply' - HELD THAT - It is found that the WBAAR would have adopted a more comprehensive approach in rendering its ruling in the present case if it had documented its observations and findings regarding satisfaction of all the conditions required for deciding the eligibility for the exemption under entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The WBAAR would have adopted a more comprehensive approach in rendering its ruling in the present case if it had documented its observations and findings regarding satisfaction of all the conditions required for deciding the eligibility for the exemption under entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The WBAAR order requires modification as while pronouncing the Advance Ruling in the instant case ruling/order issued is restricted to a single condition of the pertinent notification - it is deemed appropriate to remand the case to the Authority for Advance Ruling, i.e. the WBAAR for fresh decision. The WBAAR will take into consideration all aspects of the matter and decide the case afresh. Matter on remand.
Issues Involved:
1. Whether the upfront premium payable for leasing land is exempted u/s entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. 2. The appellant's contention regarding the status/ownership of SMPK and the denial of opportunity to present a rebuttal. 3. The necessity for a comprehensive ruling considering all conditions for exemption. Summary: Issue 1: Exemption under Notification No. 12/2017-Central Tax (Rate) The appellant, Anmol Industries Ltd., sought an advance ruling to determine if the upfront premium payable for leasing land from SMPK is exempted under entry 41 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The WBAAR ruled that SMPK does not qualify as an entity with 20 percent or more ownership of the Central Government and thus, the lease service is not exempt. Issue 2: Appellant's Contention and Denial of Rebuttal Opportunity The appellant argued that the WBAAR failed to consider the control exercised by the Central Government over SMPK, which should qualify SMPK for the exemption. They also contended that they were denied the opportunity to present a rebuttal to SMPK's submissions. The appellant emphasized various provisions of the Major Port Authorities Act, 2021, and other legal definitions to support their claim that SMPK is under the control of the Central Government. Issue 3: Comprehensive Ruling on All Conditions for Exemption The appellate authority found that the WBAAR's ruling focused only on one condition'whether SMPK has 20 percent or more ownership by the Central Government'without addressing other conditions for exemption under entry 41 of Notification No. 12/2017-Central Tax (Rate). The appellate authority noted that a more comprehensive approach was required, considering all conditions necessary for the exemption. Conclusion: The appellate authority set aside the WBAAR's order and remanded the case back to the WBAAR for a fresh decision, instructing them to consider all aspects of the matter comprehensively. The ruling highlighted the need for the WBAAR to document its observations and findings on all conditions required for determining eligibility for the exemption.
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